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Enter Stock SymbolWhat’s Ahead for Hexo Stock With Earnings on the HorizonThe past four months have been worrying for Canadian marijuana firm Hexo Corp (NYSE:HEXO). Hexo's stock price went from over $8 per share at the end of April to just under $4 at the end of August as market uncertainty and concerns about the marijuana market in general weighed on the sector.Source: Shutterstock Just a few months ago, pundits were recommending Hexo stock left and right, pointing to the firm's strategic partnerships and promise for the future as growth catalysts, but today the share price is languishing around the $4 mark. Downtrend for Hexo StockWhat happened this summer to dull the shine on HEXO? The answer to that is both complicated and simple -- absolutely nothing. Hexo stock hasn't suffered any major setbacks that would warrant a 50% decline. Instead, the firm has been caught up in an overall downtrend in cannabis stocks as investors search for safer investments to combat rising uncertainty.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Battered Tech Stocks to Buy Now Marijuana stocks are inherently risky no matter how bright a future they appear to have. That's because the industry itself is still developing and there are still a lot of regulatory hoops to jump through. No one knows where the pot industry will be in a year -- there's a chance we won't see any forward movement at all, bringing in an added layer of risk. On top of that, Hexo is a small-cap stock which, again, is inherently risky. Investors are looking to big names with massive cash coffers that pay secure dividends right now because they aren't sure where the market is heading. Simply put, that's the opposite of what you're getting with Hexo stock and so the firm has been sitting on the sidelines in recent weeks. Is Hexo Stock a Value Play?It's at this point that many investors like myself might be asking whether or not now is a good time to buy Hexo stock. There's a lot to like about HEXO's future -- the company is controlling around 30% of Quebec's marijuana market, a figure that's unlikely to move much over the next few years. If Canada's recreational marijuana market grows as expected over the next few years, Hexo has the potential to serve around 10% of the nation's cannabis market. Canada isn't the only place HEXO has the potential to expand either. The firm has aligned itself with Molson Coors Brewing (NYSE:TAP), which provides a clear path toward greater international exposure. Not only that, but HEXO's partnership with TAP underscores the firm's commitment to cross-industry partnerships.HEXO's plans to make cannabis-infused beverages with TAP is just the beginning to a much larger trend in which marijuana products gain mainstream traction. I believe Hexo's commitment to expanding into other industries is a smart one as the marijuana market's limitations and growth avenues are still unclear. HEXO Earnings on the HorizonHexo stock is due to release its fourth quarter results on Sept. 12, and the earnings report has the potential to push the share price higher. Revenue is seen coming in around 25.5 million Canadian dollars, an increase from the year-ago quarter. Management also said the company is planning to ramp up its annual production capacity to 108.000 kilograms, which it says will prepare the firm for Canada's second wave of legalization in October.The upcoming earnings call should also provide more insight into Hexo's beverage line Truss as well as the firm's other cannabis ventures like cosmetics, wellness products, and vapes. Bottom LineThere's a reason investors are wary of Hexo stock right now -- it's risky. Although I'd argue that HEXO is probably one of the best marijuana bets on the market, I'm going to wait this one out on the sidelines.Not only is the wider market suffering from turbulence due to macroeconomic concerns, but the marijuana market itself is still on very unstable footing. If you can stomach the risk, I think Hexo is a great way to play the cannabis market and I believe in the firm's strategic vision. However, be prepared for some volatility as regulations and skittish investors continue to plague HEXO's stock price.If you do buy Hexo stock, I'd be cautious about the size of your position, especially with earnings on the horizon. As of this writing Laura Hoy didn't hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Whatas Ahead for Hexo Stock With Earnings on the Horizon appeared first on InvestorPlace.Thu, 12 Sep 2019 11:43:38 +0000 —Read more…You Won’t Find Better Value Than Hexo Stock in the Canna-businessThe summer of 2019 was a period of malaise for the cannabis sector, and unfortunately that meant a selloff in Hexo (NYSE:HEXO) stock, whether it deserved the downward price pressure or not. As I see it, adverse developments from well-known names like Canopy Growth (NYSE:CGC), and Aurora Cannabis (NYSE:ACB) induced a panic that spilled over into the rest of the cannabis sector.Source: Shutterstock Since many outlets predict Sept. 12 earnings, it might be a smart idea to wait and see which way the Hexo stock price goes before taking a position. It's also fine to start a position if you believe in the recovery of cannabis stocks.Hexo in particular has great potential as a turnaround story.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Hexo Is Growing by Leaps and BoundsI recall when Hexo reported its third-quarter 2019 earnings, and it's no exaggeration to say that the results were outstanding. For one thing, Hexo completed its acquisition of Newstrike Brands during that quarter and in doing so, increased its production space to an astonishing 1.8 million square feet and its estimated annual cannabis production capacity to 150,000 kilograms. * 10 Stocks to Sell in Market-Cursed September Sebastien St.-Louis, the CEO and co-founder of Hexo, also delighted shareholders with the projection that the company will earn $400 million in revenues during fiscal year 2020. He also forecasted that Hexo will double its net revenues in the fiscal Q4.I've heard analysts refer to 2019's market as "Cannabis 2.0" or "Legalization 2.0," and Hexo is a prime example of what they're referring to. The company is not only bigger and better than it was before. It's also proactively preparing for the future. Hexo's agreement with Molson Coors (NYSE:TAP) to sell cannabis-enhanced beverages is a perfect example of how the industry is moving forward. Analysts' Projections on HEXOAn upcoming earnings announcement means that analysts are coming out of the woodwork to share their opinions on HEXO stock. For the fourth quarter of 2019, analysts project that Hexo will announce revenues of $25.5 million CAD. They expect the company to sustain a loss of 5 cents per share for the Canadian version of Hexo stock.These are very modest expectations influenced by the dismal performance of the cannabis sector as a whole. I don't see any reason why the actual results won't exceed analyst expectations. And I wouldn't be surprised if the Hexo stock price retraces upwards. My Takeaway on Hexo StockDon't get me wrong. Hexo is a much smaller company than CGC, ACB and other famous brands in the legalized cannabis space. I do not recommend taking a large position in HEXO stock shares, even after the upcoming earnings announcement. There are future developments that could create volatility for the entire cannabis market.The event that immediately comes to mind is the day when Health Canada will allow an array of cannabis products (edibles, extracts, creams, etc.) to be consumed. That day is slated for Dec. 16, but I won't be shocked if the legalization date gets delayed for one reason or another.Therefore, I will advise that prospective HEXO buyers exercise due caution. Accumulate shares gradually, prepare for possible downside in the price, respect your stop-losses if you use them and always keep your position sizes reasonable.Despite my warnings, I remain bullish on the Hexo stock price as I see the company as proactive. It's expanding quickly and preparing for a new and exciting era in legalized cannabis.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post You Won't Find Better Value Than Hexo Stock in the Canna-business appeared first on InvestorPlace.Wed, 11 Sep 2019 13:16:24 +0000 —Read more…Should Long-Term Investors Buy Hexo Stock Ahead of Earnings?Quebec-based Hexo (NYSE:HEXO) is due to report earnings on Sept 12. In Canada, pot edibles and beverages will become legal on Oct 17, one year from the original legalization of cannabis in the country. Industry watchers are referring to this new era in Canadian pot markets as "Legalization 2.0." So what does that mean for HEXO stock?Source: Shutterstock Around this time last year, Canadian cannabis stocks had started rallying in anticipation of the nationwide adult-use legalization. Therefore, the hype surrounding the launch of pot drinks in Canada is likely to give a bit of fizz to HEXO stock, too.In 2019, most cannabis stocks have been extremely volatile. And cannabis companies have lost significant value since October 2018. Summer months saw a further correction in marijuana stocks. And the share price of many of these stock, including Hexo, have come down to more attractive levels. Now that the earnings season is upon us, let's look at what may be next for the HEXO stock price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What to Expect From Hexo Stock's EarningsHexo produces, markets, and sells cannabis in Canada. It is a leading supplier to Quebec's retail outlets. The group serves the adult-use market under the HEXO brand, while it serves its medical cannabis clients through the Hydropothecary brand.In June, HEXO stock reported subdued Q3 fiscal 2019 earnings results. Total net sales came in at CAD $13 million. Over 90% of Hexo's cannabis sales during Q3 were tied to the adult recreational market. * 10 Stocks to Sell in Market-Cursed September When Hexo stock reports Q4 earnings, investors are likely to look at the company's revenue mix. In the last quarter, over 80% of total sales came from dried flower. In recent months, the price of dried flower has been decreasing and consumers are not brand loyal. If this trend continues, investors may decide that HEXO stock is overvalued.Most pot stocks are burning through loads of cash and losing money as if there is no tomorrow. Cash flows are far from predictable. In Q3, Hexo posted a CAD $2.22 million loss from operations. In the upcoming earnings report, Wall Street will likely pay attention to Hexo stock's cash flow.It is important to remember that weed is an agricultural commodity. In late 2018, during the early weeks following legalization, Canadians spent about $40 million on legal weed. However, since then sales haven't really held up. Instead the figures have come in much less robust than initially anticipated.In other words, there are possibly too many players in Canada, a relatively small market. Annual Canadian sales are not likely to exceed $4 billion. The black market is still thriving in Canada.No one knows when (or if) federal legalization will happen in the U.S. And other international sales outside these two countries are not big enough to act as a substantial catalyst for the share price of Hexo as well as other pot stocks.Could consolidation be a way forward most of these cannabis producers like Hexo stock? Hexo Stock Has an Important PartnershipNew products are not expected to hit shelves till Dec 16 as license holders will have to give Health Canada 60 days notice if they intend to sell them. And Hexo may become one of the first companies to capitalize on this development.On Aug 1, 2018, Hexo and Colorado-based Molson Coors (NYSE:TAP) announced a joint venture (JV), called Truss. As the company that makes Coors beer, Molson Coors is the third largest brewer globally with a market cap of about $12 billion.Truss is a stand-alone entity with an independent management team. Molson Coors owns a controlling 57.5% interest in the JV. Hexo owns the remaining 42.5%. The new JV is currently developing a range of non-alcoholic cannabis drinks to be marketed in Canada as of mid-December.Upcoming Canadian regulations will strictly limit what types of consumables can be produced and marketed. For example, manufacturers cannot legally combine pot and alcohol in products. In labeling, companies cannot use alcohol-related terminology, such as "chardonnay" or "IPA" either.Hexo management has recently said that the company will "have a very large supply… [and] be able to meet the demand of the marketplace." Truss is also likely to sell CBD-infused drinks in the U.S. as of 2020.The upcoming rollout of edibles and drinks is likely to help expand margins of Hexo stock. Prior to the JV announcement in Aug. 2018, Hexo share price was hovering around $3. Therefore, I expect this price level to act as support for HEXO stock in the months to come. So Should Investors Buy Hexo Stock in September?I am expecting an up leg in most of the cannabis stocks this fall as investors get ready for Legalization 2.0 in Canada. In fact, most pot stocks have started September on a high note. For example, on Aug 27, Hexo stock saw an intraday-low of $3.71. And yesterday, it hit an intraday-high of $4.75.Therefore, Hexo shares may initially rally further around the earnings report. And a potential investor could miss out on some profits for not having bought into the HEXO shares prior to the earnings.If you are considering investing in Hexo, you may want to start building a position between the $4-$4.5 levels, and expect to hold the stock for several years.$5 level would be likely to act as strong resistance. Only after the stock is able to push through and stay above $5 can Hexo shareholders begin to relax for the longer-term prospects.If you already own Hexo shares, you may also consider hedging your position with at-the-money (ATM) covered calls. Such a hedge would not only enable you to participate in an up move but also provide some downside protection. HEXO stock price is currently $4.40 and a Oct 18 expiry $4.50 strike call would sell for 40 cents. * 7 Best Stocks That Crushed It This Earnings Season However, in the long run, I am of the camp that the rich valuations in this commodity-based consumer market may continue take a hit in the coming months, especially after the hype of Legalization 2.0 ends. In addition, the longer-term technical charts, especially the trend lines and support and resistance levels in most pot stocks, including Hexo, are telling investors to exercise caution.As of this writing, Tezcan Gecgil holds covered call in TAP stock (Sep 16 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Should Long-Term Investors Buy Hexo Stock Ahead of Earnings? appeared first on InvestorPlace.Tue, 10 Sep 2019 16:36:09 +0000 —Read more…Bear of the Day: Craft Brew Alliance (BREW)Bear of the Day: Craft Brew Alliance (BREW)Tue, 10 Sep 2019 10:45:10 +0000 —Read more…Why Income Investors Should Have Molson Coors Brewing Company (NYSE:TAP) In Their PortfolioIf you are an income investor, then Molson Coors Brewing Company (NYSE:TAP) should be on your radar. Molson Coors...Tue, 10 Sep 2019 10:10:07 +0000 —Read more…Buy Aurora Cannabis (ACB) Stock Before Earnings, Despite Marijuana Volatility?Despite growing sales and wider legalization, many pot stocks have been insanely volatile as Wall Street and investors try to wrap their heads around the marijuana industry. So should you think about buying "cheap" Aurora Cannabis (ACB) Stock before Q4 earnings?Mon, 09 Sep 2019 22:27:10 +0000 —Read more…Don’t Buy Hexo Stock as It Continues to DropThe price of Hexo (NYSE:HEXO) stock continues to decline. HEXO stock fell down to the $4 threshold this past week, and has now declined more than 50% from its recent peak. Like industry rivals Tilray (NASDAQ:TLRY) and Canopy Growth (NYSE:CGC), Hexo stock has faced relentless selling.Source: Shutterstock Hexo stock has largely declined because of the huge drop in marijuana shares in general. With the industry producing far more marijuana than consumers demand -- particularly in Canada -- everyone is suffering. That said, Hexo has potentially stepped into a company-specific problem with its advertising strategy. It remains to be seen if the skeptics' arguments about Hexo's marketing strategies end up hurting the business or not. Hexo's Joint Venture With Molson CoorsIn a recent article on HEXO, Will Ashworth suggested that Hexo's partnership with Molson Coors (NYSE:TAP) acts as a floor to support Hexo's stock right now. The thinking is that the Hexo/Coors joint venture (JV) can start distributing CBD drinks in Canada when they are legalized in December. Hexo has a large supply of CBD ready, so they should be able to hit the ground running once the legal red tape is taken care of.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Best Tech Stocks to Buy Right Now Ashworth suggests that this JV could deliver $175 million in revenues in coming years. Combined with the projected Quebec market for dried flower, and Hexo stock would be selling at 2.2x its realistic sales in a few years. This is a solid bullish argument for Hexo stock.On the other hand, we'll have to see how this all plays out in practice. Hexo and Molson Coors are far from the only companies trying to commercialize CBD drinks. Even if they are successful to this extent, how much will it help Hexo's stock price? Keep in mind that TAP stock only trades for 1.1x today's sales. That's despite Molson Coors also trading at a 12x P/E ratio and paying a more than 4% dividend yield.I'm not sure Hexo stock should trade at a much higher sales ratio than Molson Coors, even assuming its projected revenue growth eventually plays out. You can make a good case for owning Molson Coors' stock today, instead of Hexo. Collect the fat dividend in the meantime, and if this JV works, it should give TAP stock a strong growth element that will cause investors to bid its shares back up. Unlike Hexo, Molson Coors has huge cash flows and profits from beer to fall back on in case its CBD drinks don't take off. Hexo Bulls May Be Overlooking These Two ConcernsOur Vince Martin made some excellent points in his recent Hexo stock article. For one thing, he pointed out that Hexo's dominance in the Quebec market is far from guaranteed in the future. Hexo achieved a significant first-moved advantage, getting a favorable contract with the provincial government.However, that contract appears to only run for one year, and it's not guaranteed that it will be renewed indefinitely. Competition has grown significantly since Hexo took its lead in the Quebec market. And now there's the advertising issue which could hurt the company's credibility in getting its contract extended. People banking on Hexo retaining a 30%+ share of the Quebec market may end up disappointed.The other concern is that Hexo has built a chunk of its strategy around being a leading food ingredients company. However, Quebec has already cracked down on CBD candies, and the national government may follow its lead. Investors will need to watch how regulation in this market develops, as a heavy touch would be bad news for the Hexo stock price. Hexo Stock VerdictI've been bearish on HEXO stock since May, when I said it would be unable to live up to its rising stock price. Even with Hexo now trading sharply lower, there's still little that would compel investors to get involved today.That's not to say that Hexo stock is without any merit. But in a marijuana sector that is taking blow after blow, you need some specific characteristic or catalyst to get excited about. There's just not enough that makes Hexo stand out right now. If you want exposure to the CBD-infused beverages business, TAP stock seems like a much better choice at this juncture.Remember that Molson Coors owns 57.5% of the beverages joint venture with Hexo. On top of that, Molson Coors has warrants to buy a large chunk of Hexo stock at $6 per share. Thus, if the partnership goes well, TAP stock owners will get a lot of the economic benefits. Sure, Hexo would have more upside than TAP if everything goes perfectly. But if there are any bumps in the road, Molson Coors will be the much safer holding of the two going forward.At the time of this writing, Ian Bezek owned TAP stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post Don't Buy Hexo Stock as It Continues to Drop appeared first on InvestorPlace.Tue, 03 Sep 2019 17:36:43 +0000 —Read more…Here’s How to Buy Hexo Stock NowIt's been a tough summer for Hexo (NYSE:HEXO) shareholders. But for investors seeking exposure to the cannabis market, the price is nearly right for a less speculative investment.Source: Shutterstock I've said it before and it bears repeating, Hexo, along with competitors Aurora Cannabis (NYSE:ACB), Canopy Growth (NYSE:CGC) or a New Age Beverages (NASDAQ:NBEV) face very real challenges despite the potential opportunity within the cannabis industry. Universally, the group is mired in losses as companies spend aggressively to gain market share. All the while, the opening up of new markets due to regulatory red tape remains much easier said than done.It's a tough combination that's resulted in supply dwarfing demand and a business environment which will undoubtedly see casualties. In large part these difficult realities are why cannabis stocks have cratered and why Hexo stock has lost more than 50% over the past four months. But turning your back on HEXO could be a big mistake.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe fact remains that Hexo is well-positioned for success within the niche edibles and cannabis-infused beverages market. With a partner in beverage giant Molson Coors (NYSE:TAP), Hexo maintains resources ranging from financial support to Molson's marketing, distribution and operational expertise. * 7 Best Tech Stocks to Buy Right Now Hexo stock's partnership isn't a guarantee of survival. For the reasons already stressed, it's simply too early to know if Hexo will ever be a viable business. But it would be unfair to not appreciate Molson Coors as a significant advantage as Hexo looks to build its brand in this up-and-coming, but still speculative market. Hexo Stock Weekly ChartHexo's technical wherewithal relative to its peers also makes it a standout in the cannabis space. Obviously, the deep corrective move over the past few months hasn't been pleasant. However, HEXO stock is technically unique. Shares remain in an uptrend supported by it's late April higher high pattern and today's higher low relative to its December bottom.With a small double bottom having formed on the weekly chart, HEXO is nearly ready for investors to buy. With this second pivot low finishing in a weekly hammer as of Friday's close, shares are in position to buy on confirmation of this reversal candlestick.My recommendation for buying Hexo stock would be to buy shares above $4.18. That's 8 cents through the high of the weekly hammer. This approach gives up a few pennies of profit in return for trying to purchase HEXO on sustainable momentum to avoid the possibility of a weaker buy signal in Hexo stock price that's doomed to fail.Similarly, and to contain risk, I'd place an initial stop at $3.63 and 8 cents beneath the pattern low. This exit looks to evade being an easy target for a bear raid hitting picture perfect stops at $3.70.In exchange for the position risk of 65 cents, I'd take partial profits in between $5.00-$5.15. The targeted area is slightly above the double bottom's July high and may draw in fresh buying interest. But with no guarantees and profits approaching 1.5x the risk, this spot reasonably makes sense off and on the price chart.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post Hereas How to Buy Hexo Stock Now appeared first on InvestorPlace.Tue, 03 Sep 2019 16:52:51 +0000 —Read more…Hexo’s “Smoke-Free” Strategy Is Solid, but Shares Remain OvervaluedHexo (NYSE:HEXO) stock has traded sideways this month. Shares rose from $3.98 on July 29 to as high as $4.95 on Aug. 13. But since mid-August, shares have fallen back, closing at $3.94 per share on Aug. 29. Compared to its larger peers, shares have held steady.Source: Shutterstock Shares in Canopy Growth (NYSE:CGC) are down more than 28% for the month. Aurora Cannabis (NYSE:ACB) stock has fallen roughly 12.7% since late July. Hexo is becoming increasingly focused on "smoke free" uses (beverages, edibles, etc.) than its peers. Focusing on this niche could be its key to success. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off With infused beverages hitting the market later this year, should investors take a position in HEXO ahead of this product launch? Or should investors take heed, given shares continue to trade at a high valuation? Let's take a closer look at Hexo stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips TAP Partnership Provides Scale with Minimal DilutionAs I discussed in my prior article, expectations for cannabis-infused products drive the Hexo stock price. The company has partnered with Molson Coors (NYSE:TAP) to launch Truss. Truss is Hexo's line of non-alcoholic, cannabis-infused beverages. This strategic partnership gives the company a greater chance of success in this space. With Molson Coors's scale and infrastructure, Truss can be rolled out more efficiently.Another positive of this partnership is the structure. So far, strategic partnership deals have been highly dilutive to cannabis company investors. With Canopy Growth, Constellation Brands (NYSE:STZ) has quietly taken over the company. This also happened with Cronos (NASDAQ:CRON) and its partner Altria (NYSE:MO).Molson Coors received warrants as part of the deal, but the partnership is structured as a joint venture. Molson Coors owns 57.5%, with Hexo owning the remainder. This may limit upside if infused beverages are a success. But it limits Molson Coors's control over the entire company. Molson Coors's warrants only give it the right to buy 11.5 million shares at a strike price of $6 a share. With 256.9 million shares outstanding, and 50.9 million warrants outstanding, this hardly gives Molson Coors control over Hexo's destiny.Other catalysts could move the Hexo stock price. The company's strategy focuses on "smoke-free" cannabis products. This includes edibles, vapes, wellness products, and cosmetics. Selling plain old pot is a commodity business. The opportunity to develop high-margin brands is the key to long-term profitability.Hexo is no slouch when it comes to selling pot. The company remains Quebec's biggest supplier. The recent acquisition of Newstrike Brands helps scale up their cultivation infrastructure. But is all of this reflected in the Hexo stock price? Let's take a look at how the stock's valuation stacks up to peers. Hexo's Valuation in Line With PeersUsing the Enterprise Value/Sales (EV/Sales) ratio, the company trades in line with peers. The company's current EV/Sales ratio is 36.4. Compare this to Aurora Cannabis (EV/Sales of 45.6), Canopy Growth (EV/Sales of 35.3), and Cronos (EV/Sales of 98.5). An EV/Sales ratio of over 30 is still a rich valuation.The expectations of Truss and other products inflates the Hexo stock price. Investor enthusiasm has tapered off, as seen from the 53% drop from its all-time high in April. If Truss is a success, Hexo stock should see a massive boost. But with the current rich valuation, additional declines are a risk. If investors lose faith in Hexo shares could fall much further.So what does this mean for investors entering the stock today? Cannabis shares have been beaten down. But marijuana stocks have yet to trade at fire sale prices. It's impossible to predict the unpredictable. Only time will tell if we have reached a bottom in cannabis stock valuation. But long term, investors may be getting a bargain entering Hexo stock at the current trading price. Hexo Has Potential, but Tread CarefullyHexo stock offers a unique opportunity for cannabis investors. While its competitors try to dominate the smoked marijuana space, Hexo is going "smoke-free." Focusing on beverages, edibles, and other cannabis-infused products, the company could find riches in niches. Their partnership with Molson Coors is a conservative way to get scale without sacrificing much equity. Unlike its larger peers, Molson Coors is in no position to quietly take over the company.The Hexo stock price remains inflated. Investors are betting on the company's future potential. Long-term, shares could see big gains. Short-term volatility is a risk. Keep HEXO on your radar, but tread carefully before entering a position.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off * 7 'Strong Buy' Stocks to Beat Volatility * 7 Mega-Cap Tech Stocks on a Rebound Now The post Hexo's "Smoke-Free" Strategy Is Solid, but Shares Remain Overvalued appeared first on InvestorPlace.Fri, 30 Aug 2019 18:24:20 +0000 —Read more…Hexo Stock Smokes its CompetitionInvestors tend to treat all cannabis stocks the same. That's pretty common in an emerging market. However, this "one size fits all" mentality means one bad stock can spoil things for the bunch. Case in point, Hexo (NYSE:HEXO) had a bad second quarter. Awful, in fact. But when looking at the company as an investment, you have to look at their business model, which is distinct from other major players like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB).Source: Shutterstock For example, Aurora is concentrating its efforts on the medicinal marijuana market. Canopy, on the other hand, is dominating the recreational use market. Cultivating one or more niches is a hallmark of the cannabis market. And it's no different for Hexo.Hexo is focusing on the edibles and beverage market. While this is a small niche at the moment, the cannabis-infused beverage market may be worth up to $3 billion by the end of 2019. The first example of this model paying dividends occurred in the fall of 2018 when Molson Coors Brewing (NYSE:TAP) partnered with HEXO. The Canadian brewer is building a cannabis beverage brand, and the first drinks will be available for sale on Dec. 16. That's the date when these products become legal in Canada.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe partnership between Molson Coors and Hexo may not seem much different than Constellation Brands (NYSE:STZ) forming an alliance with Canopy. However, it's worth noting that Molson chose Hexo over both CGC and Aurora Cannabis -- among other cannabis companies it met with. One reason for this was the company's history of innovation. It's also worth noting that Hexo will have a deliverable for this space that the other cannabis companies will not. That deliverable can be significant for Hexo stock when, pending regulatory approval, it can launch these CBD-based drinks in a limited U.S. market in 2020. Hexo Is Beating Some of the Big Players at Their Own GameIn terms of sales growth, Hexo is one of the best cannabis stories around. The company is delivering trailing 12-month revenue growth of 245%. This number is even more impressive when you consider that for quite some time, Hexo has been limited by its own production capacity. * 7 Stocks to Buy Down 10% in the Past Week That situation, however, appears to be changing.Hexo recently completed a 1-million square foot expansion of its Gatineau, Quebec facility which previously operated at approximately 310,000 square feet of capacity. This growth will allow Hexo to become one of the top-10 cannabis producers in Canada by 2020. The company also recently acquired Newstrike Brands which will eventually push Hexo's production capacity to 150,000 kilograms.But what good is supply if you don't have demand?Not to worry. The Quebec-based company also has a large supply deal with the province that will insure about 30% of Hexo's distribution over the next five years. There are few certainties in the cannabis industry. However, locking up 30% of Canada's largest cannabis market should have a positive effect on Hexo stock. Why Does HEXO's Share Price Continue to Fall?Since hitting its all-time high in mid-April, Hexo stock has declined over 50%. This selloff has taken the company below the symbolically important $1-billion valuation mark. And at its current price near $3.90 per share the stock is getting perilously close to going negative for the year. By all indications, this would make Hexo stock look like a classic falling knife, but I'm not so sure this is accurate. Regulation in the Cannabis Market Will Remain an AnchorBoth medicinal and recreational use of marijuana is gaining mainstream acceptance. But voter approval is only the first step. The obstacle that all cannabis companies face is regulatory hurdles. Hexo has been stymied by Health Canada. Canada's regulatory agency is swamped by the large amount of companies filing licensing applications for cannabis. And all of these new products must have compliant packaging which is creating another delay.But as frustrating as this is for cannabis companies and their would-be investors, it's not unexpected. The U.S. faces similar regulatory issues as it tries to assimilate products that still make many consumers wary. What's in Store for Hexo Stock?The company provides its next quarterly earnings report on Sept. 12. The market will be looking to see if the regulatory environment improves and all systems are go for a successful launch of their CBD-infused beverages. If so, Hexo stock should get a nice lift going into 2020. If not, it's still hard to ignore the potential of this stock -- which investors can get at a sizable discount.Hexo is a stock for the long haul, and like all cannabis stocks, it's not for the faint of heart. But if you look at how Hexo is different from its competition, you'll find a strong case for owning HEXO shares.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy Down 10% in the Past Week * 15 Retail Survivors to Buy for the Long Run * 7 Stocks That Wall Street Thinks Could Rise 50% Or More The post Hexo Stock Smokes its Competition appeared first on InvestorPlace.Thu, 29 Aug 2019 17:12:38 +0000 —Read more…Montreal Gets a 'Remarkable' Chance to Build a New NeighborhoodA historic brewery on the St. Lawrence River will become a new mixed-use district, with a large share of subsidized and below-market-rate housing.Thu, 29 Aug 2019 14:46:30 +0000 —Read more…Especially Under Current Conditions, Stay Far Away from Hexo StockBack in June I suggested cannabis company Hexo (NYSE:HEXO), in a sea of noisier names like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB), might be the market's best-kept marijuana-minded secret. Hexo stock has continued its struggles.Source: Shutterstock Its hub-and-spoke business model that leans on big-name partners is a savvy approach to low-cost growth its rivals aren't utilizing.I followed up on that commentary in late July, further fleshing out the notion that Hexo stock requires a long-term mindset. Near-term volatility threatened to shake shareholder confidence and undermine HEXO shares, in the absence of those partnerships.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe underlying thesis still stands. With plans to add more Fortune 500 caliber partners like its relationship with Molson Coors (NYSE:TAP) at the end of its spokes, this young cannabis name is a name worth watching. But, it's still a long-term play.The in the meantime just became very hairy and scary for Hexo stock though, and there's absolutely nothing to prevent matters from getting worse before they get better. Sector-Wide Headwinds PersistMore than once since marijuana mania took hold, after Constellation Brands (NYSE:STZ) made a major investment in Canopy Growth, have I warned investors about two related pitfalls of the cannabis craze as a whole. * 7 Tech Industry Dividend Stocks for Growth and Income One of them is the likely price-cutting commoditization of the plant. The other is investors' impending realization that simply being in the pot business is no guarantee of immediate profits.The former, incredibly enough, hasn't started to happen yet even though the prospect remains on the table.As for the latter, following second quarter's industry-wide results it's quite clear some of these names may never make their way out of the red. Canopy's quarterly sales of recreational pot actually fell sequentially, per the report from June, and Hexo stock took a beating after an unexpected revenue dip for its most recently-ended quarter.It's not the individual stories within the marijuana arena that are of interest here and now though. The movement could shrug off one or two stumbles.Rather, the cannabis craze has become a groupwide matter again, much like it was in early 2018. All of these names are being lumped together because after the past couple rounds of quarterly reports they all seem to be facing the same underlying headwinds. Those headwinds are (1) the realization that building scale is expensive and difficult, and (2) the fact that recreational demand hasn't lived up to the palpable hype from a year ago.And that's a problem for Hexo stock. With every other major marijuana name losing ground after a few-too-many red flag started to wave this year, the falling tide is dragging the Hexo stock price lower with it. Pot Stocks Have a ProblemThe graphic below tells the tale. Over the course of the past twelve months, with the exception of New Age Beverages (NASDAQ:NBEV), every major cannabis stock is in the red. And even then, a major footnote is merited. That is, of all the marijuana names in focus, NBEV stock has fallen the farthest from its peak. It's now down nearly 70% from its September-2018 high.It's not a mere matter of bad luck or an unfair comparison either. These names have been steadily trending lower, as a group and individually, since April. Several are at or near new 52-week lows. Click to EnlargeWhen one name in a group of eight stocks stumbles, there's something wrong with that company. When all eight lose ground for four straight months there's something wrong with the industry.Admittedly, it may be more about perception than reality. It just doesn't matter. If the bulk of investors are convinced none of these names are worth holding onto, then these names are going to struggle. Bad news for one leads to bad results for another, creating a self-fueling selloff. Bottom Line for HEXO StockHexo is still arguably one of the more compelling names in the cannabis business. By putting itself in a support and supply role for major brands that want to plug into the cannabis market, it avoids being forced to make risky investments that may or may not pan out.Hexo also doesn't grant large, controlling stakes of itself to its partners the way rivals have. Case(s) in point: Constellation now controls nearly 40% of Canopy Growth, which was enough to oust CEO Bruce Linton in July.Altria Group (NYSE:MO) now owns 45% of Cronos Group (NASDAQ:CRON), with the option of buying up to 55%. That effectively puts it in charge of Cronos, even though it may not have the same vision as Cronos CEO Michael Gorenstein does. Hexo remains relatively flexible in comparison.But, so what? All pot-based plays are being treated as liabilities now, and Hexo stock is no exception to that trend.As to when it might end is anybody's guess, but the tide's not likely to turn until at least a couple of these names can prove there's sustainable profit growth ahead.I'm not holding my breath.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Industry Dividend Stocks for Growth and Income * 7 Stocks the Insiders Are Buying on Sale * 7 of the Worst Stocks on Wall Street The post Especially Under Current Conditions, Stay Far Away from Hexo Stock appeared first on InvestorPlace.Thu, 29 Aug 2019 11:10:33 +0000 —Read more…What's on Tap for This Beverage Stock? High DividendsMolson Coors has an impressive dividend yield that pays out on Sept. 13 to shareholders of record on Aug. 30.Thu, 29 Aug 2019 10:00:00 +0000 —Read more…Why You Might Be Interested In Molson Coors Brewing Company (NYSE:TAP) For Its Upcoming DividendIt looks like Molson Coors Brewing Company (NYSE:TAP) is about to go ex-dividend in the next 4 days. Investors can...Sat, 24 Aug 2019 13:58:02 +0000 —Read more…Will Hexo Stock Be Around for the Long Haul?When it comes to Canadian cannabis companies, Hexo (NYSE:HEXO) doesn't always get the recognition it deserves. Hexo stock is often seen as the little brother to bigger players like Aurora Cannabis (NYSE:ACB) and Canopy Growth (NYSE:CGC). Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut if you're looking to get in at the ground floor with a growing cannabis company, HEXO isn't a bad option. The company's sales have grown by massive amounts over the last 12 months. And the company predicted its revenue will double over the next quarter. Of course, many investors are hesitant given some of the recent uncertainty in the Canadian cannabis industry. Here are three things you need to know before investing in Hexo stock. The Cannabis Industry Is On Unsteady FootingThere's been a lot of volatility in the cannabis industry recently. First, there was the revelation that CannTrust (NYSE:CTST) was illegally growing marijuana in unlicensed rooms. And most recently, Canopy Growth released an abysmal earnings report showing that the company isn't as profitable as many investors believed. All of this has caused marijuana stocks across the board to fall.The cannabis industry is going to be huge, but it's still unclear which companies will be around to cash in on it. At this point, it's impossible to predict which company will fall victim to regulatory issues or plunging sales next. Hexo Stock Isn't Yet ProfitableHexo's most recent earnings report showed that the company achieved huge growth over the past year. In the third quarter of 2018, the company's sales were a mere CAD $1.24 million. This year, that figure came in at CAD $15.9 million.However, like many cannabis companies, Hexo is not yet profitable. The company may have earned more during the third quarter, but it also spent a lot more money. Its total operating expenses came to CAD $24.1 million during the third quarter.And the company is still held back by its production capacity. However, the company did open a 1-million-square-foot greenhouse in April so it will be interesting to see how that impacts the company during its Q4. HEXO Has Long-Term PotentialLooking forward, Hexo stock does have a lot of long-term potential. The company's sales are impressive and it currently holds a 30% market share in Quebec.And Hexo is actively working to improve its production capacity. In March, the company announced it planned to acquire the Toronto-based Newstrike Brands. Once these facilities are fully operational this will give Hexo an additional 470,000 square feet in production space. The company currently makes most of its revenue from recreational and medicinal marijuana sales. But its recent partnership with Molson Coors (NYSE:TAP) sets the stage for Hexo to lead the market in cannabis-infused beverages, once legalized. * 10 Marijuana Stocks That Could See 100% Gains, If Not More My advice with Hexo is to proceed with caution. The fundamentals look promising but there are just too many unknowns going forward. As of this writing, Jamie Johnson did not hold a position in any of the aforementioned stocks. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Will Hexo Stock Be Around for the Long Haul? appeared first on InvestorPlace.Thu, 22 Aug 2019 17:29:02 +0000 —Read more…Blue Moon brew launches ad campaign from DDB Chicago that's anything but routineOn the eve of the beer's 25th anniversary, DDB Chicago has developed a new ad campaign for the brew that asks an intriguing question.Wed, 21 Aug 2019 19:27:27 +0000 —Read more…Arlington Value Capital, LLC Buys Alliance Data Systems Corp, Sells Molson Coors Brewing CoSalt Lake City, UT, based Investment company Arlington Value Capital, LLC (Current Portfolio) buys Alliance Data Systems Corp, sells Molson Coors Brewing Co during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Arlington Value Capital, LLC. Continue reading...Tue, 20 Aug 2019 17:38:13 +0000 —Read more…Hexo Stock Needs Just Two Things to Move HigherAmong marijuana equities, Hexo (NYSE:HEXO) stock continues to gain increased attention. An alliance with Molson Coors (NYSE:TAP) and a solid base of business in its home province of Quebec have bolstered its business. Also, it looks poised to establish another niche once Canada legalizes cannabis-infused beverages.Source: Shutterstock However, departures in top management and a possible violation of advertising regulations have hurt the company. Moreover, the overall industry has suffered as supply has increased and more investors have questioned inflated valuations.Hence, for the Hexo stock price to rise, investors need both a solid floor and a catalyst.InvestorPlace - Stock Market News, Stock Advice & Trading Tips HEXO Is Outside of the Top Tier, But CompellingOver the last year, it has become clear that Canopy Growth (NYSE:CGC), Aurora Cannabis (NYSE:ACB), Cronos Group (NASDAQ:CRON), and Tilray (NASDAQ:TLRY) have emerged as the market leaders in Canadian marijuana. However, many investors missed the run-up in these stocks and have sought a leader among the alternatives.Some see that as Hexo stock, but that strategy faces some challenges. Our own Luke Lango does not think Hexo will survive an inevitable industry shakeout. His prediction could easily come true. I also agree that most of the smaller marijuana stocks will disappear. * 10 Cheap Dividend Stocks to Load Up On However, investors can make money in such stocks. Strangely, my best returns in trading marijuana stocks came from charting the moves in the beleaguered CannTrust (NYSE:CTST). My caution in making sure a floor truly is a floor saved me from getting back in as their scandal came to light. Has Hexo Stock Bottomed?Still, Hexo stock may have established such a bottom. In a recent article, I told investors to stay away until "it found a floor," not fully realizing at the time that it might have bottomed in the $4 per share range. InvestorPlace contributor Mark Putrino outlines how HEXO stock has built support at that level. Since finding this bottom, HEXO has risen slightly to the $4.40 per share level.HEXO has now become my favorite among the aforementioned "other" marijuana stocks. Yes, they may have pushed the envelope by advertising on Snap's (NYSE:SNAP) platform. Also, departures in the C-suite have made some investors nervous. However, I like that it holds a 30% market share in Quebec, the province that is home to 20% of Canada's population.In this market, the catalyst that could boost the Hexo stock price has not yet become apparent. However, it has built a partnership with Molson Coors that could eventually bolster the stock.This alliance offers two key benefits. It could help to make Hexo a leader among cannabis-infused beverages once Canada legalizes those drinks. It also gives HEXO a segue into the U.S. This will offer benefits as both individual states and the federal government loosen restrictions. Should I Buy Shares?To profit from Hexo stock, investors need both a floor and a catalyst. For one, investors must become convinced that the floor truly is a floor. Nobody on the outside can credibly rule out a CannTrust-like scandal in any marijuana stock. However, barring that uncommon scenario, HEXO appears to have established that support at the $4 per share level.I should add that I also see the bottom holding in case more multiple compression occurs. For next year, analysts estimate that revenues will range between 185.7 million CAD ($139.8 million) and 398.3 million CAD ($299.9 million). This would mean a price-to-sales ratio of between 3.7 and 7.8 at the current $4.40 per-share price. That appears high by S&P 500 standards but comes in well under most marijuana stocks.I also think one problem with Hexo stock involves an industry factor outside of the company's control. After a shortage last fall, Canada now finds itself in a supply glut for dried flower. This challenges both Hexo and its peers to find a way to increase demand. That "way" could come later this year with cannabis-infused drinks.Some believe Hexo stock will not survive an industry shakeout. However, I think both the Molson Coors alliance and the market share in Quebec almost ensure such a scenario happens through a buyout instead of a bankruptcy. This gives investors yet another reason to look at HEXO.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Hexo Stock Needs Just Two Things to Move Higher appeared first on InvestorPlace.Mon, 19 Aug 2019 12:36:15 +0000 —Read more…SHAREHOLDER REMINDER: Molson Coors Brewing Company (TAP) Sued for Misleading Shareholders; The Law Offices of Timothy L. Miles Encourages Molson Shareholder to Contact the FirmHENDERSONVILLE, TN / ACCESSWIRE / August 19, 2019 / The Law Offices of Timothy L. Miles, who has been leading the fight to protect shareholder rights for over 18 years, reminds investors that another purchaser ...Mon, 19 Aug 2019 09:35:00 +0000 —Read more…Stephen Ross isn’t Trump’s only supporter — Here are other business leaders who have backed TrumpCEOs of consumer-facing brands have been careful to align their companies in partisan Trump era politics. Here are some of the business leaders who have thrown dollars behind the President.Sun, 18 Aug 2019 12:13:24 +0000 —Read more…

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